How card machine loans work: step-by-step guide
By Helm, Funding Specialist
- You apply with your card processing history
- The provider calculates your offer based on card revenue
- Funds arrive within 24 to 48 hours
- Repayments are deducted automatically from card sales
- No fixed monthly payments or manual transfers
Card machine loans are one of the simplest forms of business finance available. The entire process, from application to repayment, is designed to be fast, straightforward, and automatic.
Step 1: Application
You complete a short online application, providing your business details, card processing history, and the amount you are looking for. Most applications take 10 to 30 minutes.
Step 2: Assessment
The provider analyses your card machine data to determine how much you can borrow and what terms to offer. This typically takes a few hours. They are looking at your average monthly card revenue, the consistency of your transactions, and your overall business health.
Step 3: Offer
You receive an offer detailing the advance amount, factor rate, total repayment amount, and daily repayment percentage. Review these carefully before accepting.
Step 4: Funding
Once you accept the offer and sign the agreement, funds are deposited into your business bank account. This typically happens within 24 to 48 hours.
Step 5: Repayment
Repayments begin automatically. Each day, a fixed percentage of your card machine sales is deducted before the remaining funds settle into your account. On days with no card sales, no repayment is taken.
| Daily Card Sales | Repayment (15%) | You Keep |
|---|---|---|
| £300 | £45 | £255 |
| £800 | £120 | £680 |
| £1,500 | £225 | £1,275 |
| £0 (closed) | £0 | £0 |
Step 6: Completion
Once the total agreed repayment amount has been collected through your daily deductions, the loan is complete. There is no balloon payment or final lump sum. Many businesses then choose to take a new advance to continue funding growth.
Frequently asked questions
Do I need to change my card machine?
No. Card machine loans work with your existing terminal and processor.
How is the repayment percentage decided?
The percentage is set when you agree to the terms. It is based on the advance amount, your card volume, and the provider's assessment.
What if my card revenue drops?
Repayments automatically reduce because they are a percentage of your actual sales. This built-in flexibility protects your cash flow.
Can I repay early?
With most providers, the total repayment amount is fixed regardless of how fast you repay. Repaying early does not save money but frees you up for a new advance sooner.